South Africa Esports Market Overview, 2028
eSports are associated with different video game genres, with the most popular being first-person shooters, real-time strategy, fighting, multiplayer online battle arenas (MOBAs), and others. This is still not the case in South Africa. Things will improve significantly as more young players enter the scene. The potential is already there, as evidenced by South African players' performances in CS:GO and FIFA. Things should improve for South African eSports with some attention and investment. Steaming platforms such as YouTube and Twitch can provide a great opportunity for an average gamer who has lots of enthusiasm for their favourite game and who loves engaging with people.
According to the research report South Africa eSports Market Overview, 2028, published by Bonafide Research, the market is expected to add USD 24.32 million by 2028.Streaming is expected to dominate the segment share during the forecast period. The growing emphasis on fan engagement is likely to fuel demand for live sports events. Furthermore, the rise in smartphone users is expected to fuel demand for live sports tournaments. Media rights are making a significant contribution to the country's esports industry. Fans can now track live esports activity across the country thanks to easy access to communication technology. Media companies pay exorbitant fees to win the exclusive rights to broadcast live streaming of major sporting events. In recent years, the sale of broadcasting and media rights has been the most important source of revenue for most esports organizers. The revenue generated by the sale of media rights is used to fund major sporting events, renovate stadiums, and contribute to the grassroots development of esports. During the forecast period, sponsorship is expected to grow rapidly, followed by advertising. As the number of viewers grows, the sponsoring team invests in the platform to strengthen its brand image. Similarly, various gaming platforms include in-app advertisements to boost revenue generation.
South Africa is slowly hosting more tournaments for teams domestically and across Africa to take part in. MSSA, which is part of the International Esports Federation, runs a large range of events in South Africa, ranging from school level to national championship level. There are some notable tournaments and leagues, including the African Cyber Gaming League, ESEA South Africa, ESL African Championship, Mythic Royale, Predator Winter Slam 2021, RLCS 2021-22 Fall: Sub-Saharan Africa Regional, RLCS 2021-22 Winter: Sub-Saharan Africa, World Electronic Sports Games (WESG) South Africa, Vox Cup Series, and many more. There are some notable organizations: ATK, Bravado Gaming, DNMK Esports, Goliath Gaming, and White Rabbit Gaming. There are some national associations, including the Africa Electronic Sport Association (AESA), the Confederation of African Esports (CAES), Mind Sports South Africa (MSSA), and many more. There have been 671 South African esports players that have been awarded a total of $1,476,942.61 USD in prize money across 357 tournaments. Counter-Strike: Global Offensive was the highest awarding game, with $879,120.25 USD won, accounting for 59.52% of all earnings by South African players.Johnny JT Theodosiou is the highest-earning South African player with $137,917.94 USD in prize money won overall, all of which was won from playing in Counter-Strike: Global Offensive tournaments. There are some eSports games like Counter-Strike: Global Offensive, Rocket League, FIFA 18, Dota 2, Hearthstone, Apex Legends, FIFA 21, Battlefield 4, StarCraft II, Assetto Corsa Competizione, and many more. Some of the top eSports players are Johnny Theodosiou, Aran Groesbeek, Rhys Armstrong, Dimitri Hadjipaschali, Ruan van Wyk, Ethan Deysel, Gareth Spiers, Gareth Ries, and many more.
Esports have not been officially recognised as a sport in South Africa. Instead, esports is classified as a mind sport—in the same category as disciplines such as chess—and is administered by Mind Sports South Africa (MSSA). MSSA is a national governing body for all mind sports, including esports, and has been officially recognised by an Act of Parliament in South Africa. The Africa Electronic Sport Association (AESA) was set up as an independent non-profit organisation to reduce the barriers of entry into esports for young and especially underprivileged people. The AESA has designed a short educational course for parents and caregivers that provides an Research Report of the risks and benefits that online gaming has for children and what strategies there are to keep children safe when they are playing online. On a collegiate level, University Sports South Africa (USSA), a governing body for university sport in South Africa, introduced esports as an event in September 2019.
Numerous factors, such as increased video game awareness and the popularity of Esports, are driving the country's growth in the Esports market. Long-term investment initiatives by large corporations, as well as an increase in the number of tournaments with large prize pools, create rewarding opportunities in the market during the forecast period. The growing use of smartphones in the world's developing economies is due to a variety of factors, including an increase in per capita income, affordability, multiple low-cost options with significant features, and many others. As the demand for esports events increases, it will create lucrative opportunities for the esports industry.
Health and Addiction Concerns for eSports Impede the Market's Growth Gamers may experience metabolic disorders resulting from light-emitting diode computer monitors and psychological problems related to gambling addiction and social behaviour disorders. The health effects of electronic sports players have been studied, and it was discovered that they are more likely to suffer musculoskeletal injuries in the back, neck, and upper extremities. In addition, spending excessive time in front of a computer monitor can cause metabolic disorders. Most of these issues arise from sedentary lifestyles and poor posture, which are common among these players. Furthermore, the introduction of electronic sports college scholarships is a source of concern, as young people can now justify their excessive use of games as being the next electronic sports stars, even if their chances of becoming the one are extremely slim.
Considered in this report
• Geography: South Africa
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028
Aspects covered in this report
• South Africa esports market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation
By Revenue Streams:
• Sponsorship
• Media Rights
• Merchandise & Tickets
• Publisher Fees
• Digital
• Streaming
By Device Type:
• Mobile (Smartphone, Tablet)
• PC (Laptop, Desktop)
• Gaming Device (Console, Handheld Devices)
• Other (VR, Smart TV, etc.)
The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.
Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the esport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.
Keywords:
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